Banks seek out wealthy Indian diaspora in $50 billion deposit drive

Indian banks have launched a campaign to attract $50 billion in deposits from the wealthy Indian diaspora. The initiative focuses on non-resident Indians (NRIs) with significant assets abroad.

Several major banks are offering competitive interest rates and tailored services to lure these deposits. The drive comes as Indian lenders seek to bolster their deposit bases amid rising credit demand.

The Reserve Bank of India has relaxed certain rules to facilitate easier repatriation and investment for NRIs. This includes allowing higher interest rates on foreign currency deposits and simplifying account opening procedures.

Industry experts note that the Indian diaspora holds substantial wealth, particularly in the United States, United Kingdom, and Gulf countries. Tapping into this pool could provide a stable source of long-term funding for Indian banks.

The deposit mobilization effort is part of a broader strategy to strengthen the country's foreign exchange reserves and support economic growth. Banks are expected to intensify their outreach through digital platforms and NRI-focused events.